Monetary policy gets more attention but is only part of the Federal Reserve’s job. Yellen is also the nation’s top bank regulator. The Federal Reserve Act gives her that responsibility and the 2010 Dodd-Frank financial reform law gave her more.

Specifically, Dodd-Frank requires the Federal Reserve to make sure no bank is “Too Big to Fail.” Institutions deemed “systemically” important must submit a “Living Will” document outlining how they would unwind their obligations in a crisis.

Warren asked Yellen if she was satisfied at JPMorgan Chase’s (JPM) resolution plan, pointing out that JPM now has four times more assets than Lehman Brothers did at the time of its 2008 bankruptcy.

Here’s a trivia question for you. How many subsidiaries does JPM have? You might guess a few dozen. Wrong; the correct answer is 3,391. JPMorgan has more subsidiaries than Canada has banks.

How does a bank with 3,391 subsidiary entities collapse in an “orderly fashion,” like the Dodd-Frank Act says it should? I don’t know. Yellen doesn’t know, either.

Unlike me, knowing the answer is part of Yellen’s job.

Congress specifically ordered the Federal Reserve to determine if these plans were credible and, if necessary, make banks sell off assets and shrink if they could not plausibly explain how they would resolve their affairs in a crisis.

You have to see the video of their exchange to grasp how clueless Yellen looked. Yellen should have known the question was coming; Warren is a fierce critic of Wall Street and has never been shy about it.

Nonetheless, the best Yellen could muster was a feeble, “I understood this to be an iterative process.” The Fed is waiting for “feedback” from JPM and other big banks… four years after Dodd-Frank went into effect.